Everton considers sale in test of football’s inflated valuations
Record Liverpool FC deal skews sellers’ expectations of what their clubs should command: sports deals advisers
Sports deals advisers THE Friedkin Group are contemplating selling a controlling stake in Everton Football Club following a record-breaking Liverpool FC minority investment. The US firm, which has partnered with investment bank Moelis & Company, revealed plans to sell a controlling interest in Everton less than two years after acquiring the Premier League club. This move comes as investors weigh the inflated valuations of football assets.
Everton has been financially stabilized since being acquired by The Friedkin Group in late 2024, following a period of uncertainty under former owner Farhad Moshiri. The group's efforts to refinance liabilities and complete Everton's new stadium at Hill Dickinson have enhanced the club's commercial potential. However, securing competitiveness for the team would likely require substantial additional capital from any prospective buyer to bolster the playing squad.
The Liverpool FC minority stake sale, led by Amit Bhatia and supported by investors like Jeff Bezos and Eduardo Saverin, set a new benchmark for football minority investments, with a valuation surpassing US$6 billion. This record-setting deal has influenced sellers' expectations, with sports deals advisers noting that some clubs' valuations have become detached from their economic realities.
Everton is currently valued at approximately £720 million (US$951.9 million) based on the latest accounts, according to analysis by football adviser Tom Markham. To maintain competitiveness, The Friedkin Group may need to invest over £400 million in the club, as indicated by independent researcher Paul Quinn. Similar valuation challenges are evident in the ongoing struggle to finalize a transaction for Tottenham Hotspur, where a 24.99% stake held by Eight Sports Capital has stalled due to disagreements over the club's worth.
Despite both Everton and Tottenham boasting state-of-the-art stadiums and robust commercial revenues, fair valuations for football clubs remain a contentious issue.
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